Dulux Group’s (ASX:DLX) 51 per cent joint venture company DGL Camel International has entered into an agreement to sell most of its coatings portfolio in Hong Kong and mainland China to Yip’s Chemical Holdings, following a strategic review of the DGL Camel portfolio.
The transaction is expected to be complete late in the first half of the 2018 financial year.
The FY2018 EBIT outcome for the Hong Kong and China business is expected to be broadly in line with FY2018, taking into account the sale transaction.
The company's Selleys business in Hong Kong and China and a small part of the coatings portfolio will be retained.
The operating performance of the ongoing business is expected to break even, with further information on the transaction to be provided in the half year results in May 2018.
Shares in Dulux Group (ASX:DLX) are trading 0.78 per cent lower to $7.60.